Dogecoin (DOGE) is seeing some revived interest as on-chain metrics have indicated the beginning of a critical accumulation phase. Historical analysis has proved the reaction in previous support zones to be critical in the price movement of Dogecoin, marking the beginning of a prominent trend.
At the time of writing, DOGE is trading at $0.1427, posting a 12% gain over the last 24 hours. Daily trading activity has climbed to $5.33 billion, while DOGE’s total market value now stands at $24.05 billion, reflecting renewed interest around the meme coin.
Dogecoin Enters Key Accumulation Zone
As per the statistics that Joao Wedson has shared, Dogecoin is now in the most critical accumulation region. The region is indicated by the CVDD Channel, which is the long-term on-chain indicator that is the region that DOGE takes as a solid price floor.
Historically, in past market cycles, the blue levels of the CVDD Channel have been major support levels. It is important to highlight that, shortly after DOGE reached the first blue level, there was a massive 24% increase in the price in just 48 hours.
The CVDD (Cumulative Value Days Destroyed) indicator makes use of on-chain activity to approximate the long-term value by measuring how long coins are retained before transferring.
This CVDD Channel improves on that information by introducing levels based on Fibonacci, establishing an area where, historically, the price action responded. To explain, Dogecoin’s activity in the lower blue CVDD levels historically indicates where long-term investors have been accumulating.
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Dogecoin Signals Major Breakout Ahead
Further fueling the optimistic sentiment was the fact that Bitcoinsensus was also pointing out that there was the possibility of a much larger breakout in the future. On the basis of past trends, it was noticed that DOGE was poised for a breakout in the direction of $0.75, targeting a heavy white dotted resistance line on the chart.
Although nothing is guaranteed at this point, the on-chain indicators and market action are showing that DOGE may be embarking on the beginning steps of another crucial phase.
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